SEBI eases regulatory compliance for FPIs investing only in government securities | Details here
Indian capital market regulator Securities and Exchange Board of India (SEBI) has reduced the regulatory compliance for all foreign portfolio investors (FPIs) investing exclusively in government securities (G-Secs).
Indian capital market regulator Securities and Exchange Board of India (SEBI) has reduced the regulatory compliance for all foreign portfolio investors (FPIs) investing exclusively in government securities (G-Secs).
In a circular dated 7 September, SEBI said: "FPIs investing only in Government Securities shall not be required to furnish investor group details," thereby reducing the regulatory compliance burden for FPIs investing solely in G-Secs.
According to the circular, the amended norms say FPIs that invest exclusively in Government Securities are no longer required to furnish investor group details.
This latest SEBI directive follows a Reserve Bank of India (RBI) circular dated 5 June 2026, which removed the concentration limit requirement for FPIs investing in Government Securities via the General Route. Because concentration limits were removed, identifying investor groups for G-Sec-only FPIs became obsolete.
“With a view to providing greater ease of investment to FPIs, Reserve Bank of India vide circular dated June 05, 2026, has inter alia withdrawn the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. Consequently, the requirement for identification of investor group by an FPI investing only in Government Securities is no longer relevant and is therefore being removed,” said the SEBI circular.
Previously, under a 10 September 2025 amendment, this exemption only applied to FPIs investing exclusively in G-Secs via the Fully Accessible Route. The new rule broadens the relief to all FPIs investing only in Government Securities, regardless of the route.
SEBI has directed that depositories, custodians, and designated depository participants make the necessary changes to their systems to effect the changes, as the provisions of this circular came into force immediately.
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